Let's break this down, phrase by phrase...
I am developing an Operating System
You're creating a whole new operating system?
For what hardware platform?
You have some very stiff competition.
Windows, Linux, Apple, Android.
Who is your target market?
OK, this I gotta see...
a bootable setup off a floppy disk.
For all 3 of you in the western world that still have a functioning floppy drive
I'm guessing I would be sued if I used MS-DOS, so does anyone know a version of DOS for commercial use?
FreeDOS?
But given the right contract and enough licensing money...anything is possible to use.
If this is a whole OS that you are creating, what do you need DOS, of any flavor, for?